TV personality and former buying agent Phil Spencer recently expressed his concerns about the private rental sector, highlighting the struggles faced by tenants due to limited options and increasing rent prices. Spencer, known for his role in Location Location Location, addressed the issue in an interview with Metro.
Spencer explained that tax rule changes and unattractive investment conditions for buy-to-let properties have led to fewer landlords entering the market and existing landlords selling their properties. This has resulted in a lack of rental properties and consequently, higher rents for tenants. Although landlords often receive little public sympathy, Spencer argues that supporting landlords could alleviate rental market issues.
In an effort to encourage current and potential landlords to continue investing in buy-to-let properties, Spencer provided five reasons to stay in the sector, despite legislative and cost challenges. First, he mentioned the potential for good capital returns, with UK house prices increasing by 20.4% between January 2020 and December 2022. Second, rental returns have remained strong in high-yield areas. Third, rental demand is not expected to slow down significantly due to low levels of housebuilding, especially for affordable housing. Fourth, potential investors can still own buy-to-let properties through a company to reduce tax and overhead costs. Lastly, landlords can take pride in providing homes for tenants, contrary to the negative landlord-tenant relationship often portrayed.
The full interview with Phil Spencer can be found on Metro’s website.
